§ Mr. David HowellTo ask the Secretary of State for Foreign and Commonwealth Affairs what response Her Majesty's Government have given to the recent request by President Chiluba of Zambia for additional relief for Zambia's foreign debts; what proportion of these debts are owed to Governments; and if he will make a statement.
§ Mr. Lennox-BoydWe have already rescheduled debt service payments totalling some £4.1 million due in 1992 on past United Kingdom aid loans. We have also told the Zambian Government that, provided their economic reform programme remains in place, we will consider cancelling all Zambia's outstanding aid debt to the United Kingdom.
Other official debt owed to the United Kingdom and other government creditors will be considered in the context of the Paris club. Subject to IMF approval of Zambia's economic reform programme, we shall be pressing for Zambia to receive Trinidad terms at a Paris club meeting later this month. These terms resulted directly from proposals made by the Prime Minister, in 1990, to relieve the burden of debt on the poorest, most heavily indebted countries.
Of Zambia's $4.8 billion—£2.7 billion—long-term debt, about $2.8 billion—£1.6 billion—is owed to Governments.